In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Free cash flow to the firm (FCFF) is generally described as cash flows after direct costs and before any payments to capital suppliers.

Intrinsic Stock Value (Valuation Summary)
Weighted Average Cost of Capital (WACC)
FCFF Growth Rate (g)

Stock valuation by this method is not possible because prior year FCFF is less than zero.

Super Micro Computer Inc., free cash flow to the firm (FCFF) forecast

US$ in thousands, except per share data

Year	Value	FCFF_t or Terminal value (TV_t)	Calculation	Present value at 20.33%
0¹	FCFF₀	-6,884,331
1	FCFF₁	—	= -6,884,331 × (1 + 0.00%)	—
2	FCFF₂	—	= — × (1 + 0.00%)	—
3	FCFF₃	—	= — × (1 + 0.00%)	—
4	FCFF₄	—	= — × (1 + 0.00%)	—
5	FCFF₅	—	= — × (1 + 0.00%)	—
5	Terminal value (TV₅)	—	= — × (1 + 0.00%) ÷ (20.33% – 0.00%)	—
Intrinsic value of Super Micro Computer Inc. capital				—
Less: Series A Mandatory Convertible Preferred Stock (fair value)				4,481,550
Less: Lines of credit, term loans, and convertible notes (fair value)				8,357,748
Intrinsic value of Super Micro Computer Inc. common stock				—

Intrinsic value of Super Micro Computer Inc. common stock (per share)				$—
Current share price				$43.19

Based on: 10-K (reporting date: 2026-06-30).

¹ See details »

Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.

Super Micro Computer Inc., cost of capital

	Value¹	Weight	Required rate of return²	Calculation
Equity (fair value)	28,374,335	0.69	27.50%
Series A Mandatory Convertible Preferred Stock (fair value)	4,481,550	0.11	7.00%
Lines of credit, term loans, and convertible notes (fair value)	8,357,748	0.20	3.14%	= 3.58% × (1 – 12.37%)

Based on: 10-K (reporting date: 2026-06-30).

¹ US$ in thousands

Equity (fair value) = No. shares of common stock outstanding × Current share price
= 656,965,384 × $43.19
= $28,374,334,934.96

Lines of credit, term loans, and convertible notes (fair value). See details »

² Required rate of return on equity is estimated by using CAPM. See details »

Required rate of return on debt. See details »

Required rate of return on debt is after tax.

Estimated (average) effective income tax rate
= (19.90% + 12.90% + 5.20% + 14.70% + 15.70% + 5.80%) ÷ 6
= 12.37%

WACC = 20.33%

FCFF growth rate (g) implied by PRAT model

Super Micro Computer Inc., PRAT model

	Average	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Selected Financial Data (US$ in thousands)
Interest expense		194,574)	59,573)	19,352)	10,491)	6,413)	2,485)
Net income		2,230,453)	1,048,854)	1,152,666)	639,998)	285,163)	111,865)

Effective income tax rate (EITR)¹		19.90%	12.90%	5.20%	14.70%	15.70%	5.80%

Interest expense, after tax²		155,854)	51,888)	18,346)	8,949)	5,406)	2,341)
Add: Series A Mandatory Convertible Preferred Stock dividends		13,088)	—)	—)	—)	—)	—)
Interest expense (after tax) and dividends		168,942)	51,888)	18,346)	8,949)	5,406)	2,341)

EBIT(1 – EITR)³		2,386,307)	1,100,742)	1,171,012)	648,947)	290,569)	114,206)

Lines of credit and term loans, current		2,039,774)	75,060)	402,346)	170,123)	449,146)	63,490)
Lines of credit and term loans, non-current		2,016,374)	37,415)	74,083)	120,179)	147,618)	34,700)
Convertible notes		4,664,139)	4,645,178)	1,697,716)	—)	—)	—)
Total Super Micro Computer, Inc. stockholders’ equity		14,479,452)	6,301,693)	5,417,206)	1,972,005)	1,425,575)	1,096,225)
Total capital		23,199,739)	11,059,346)	7,591,351)	2,262,307)	2,022,339)	1,194,415)
Financial Ratios
Retention rate (RR)⁴		0.93	0.95	0.98	0.99	0.98	0.98
Return on invested capital (ROIC)⁵		10.29%	9.95%	15.43%	28.69%	14.37%	9.56%
Averages
RR	0.97
ROIC	11.92%

FCFF growth rate (g)⁶	0.00%

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).

¹ See details »

2026 Calculations

² Interest expense, after tax = Interest expense × (1 – EITR)
= 194,574 × (1 – 19.90%)
= 155,854

³ EBIT(1 – EITR) = Net income + Interest expense, after tax
= 2,230,453 + 155,854
= 2,386,307

⁴ RR = [EBIT(1 – EITR) – Interest expense (after tax) and dividends] ÷ EBIT(1 – EITR)
= [2,386,307 – 168,942] ÷ 2,386,307
= 0.93

⁵ ROIC = 100 × EBIT(1 – EITR) ÷ Total capital
= 100 × 2,386,307 ÷ 23,199,739
= 10.29%

⁶ g = RR × ROIC
= 0.97 × 11.92%
= 0.00%

FCFF growth rate (g) forecast

Super Micro Computer Inc., H-model

Year	Value	g_t
1	g₁	0.00%
2	g₂	0.00%
3	g₃	0.00%
4	g₄	0.00%
5 and thereafter	g₅	0.00%

where:
g₁ is implied by PRAT model
g₅ is implied by single-stage model
g₂, g₃ and g₄ are calculated using linear interpolation between g₁ and g₅

Calculations

g₂ = g₁ + (g₅ – g₁) × (2 – 1) ÷ (5 – 1)
= 0.00% + (0.00% – 0.00%) × (2 – 1) ÷ (5 – 1)
= 0.00%

g₃ = g₁ + (g₅ – g₁) × (3 – 1) ÷ (5 – 1)
= 0.00% + (0.00% – 0.00%) × (3 – 1) ÷ (5 – 1)
= 0.00%

g₄ = g₁ + (g₅ – g₁) × (4 – 1) ÷ (5 – 1)
= 0.00% + (0.00% – 0.00%) × (4 – 1) ÷ (5 – 1)
= 0.00%

Super Micro Computer Inc. (NASDAQ:SMCI)

Present Value of Free Cash Flow to the Firm (FCFF)

Intrinsic Stock Value (Valuation Summary)

Weighted Average Cost of Capital (WACC)

FCFF Growth Rate (g)

FCFF growth rate (g) implied by PRAT model

FCFF growth rate (g) forecast